2018 Q3 Form 10-Q Financial Statement

#000091376018000126 Filed on August 06, 2018

View on sec.gov

Income Statement

Concept 2018 Q3 2018 Q2 2018 Q1
Revenue $6.079B $7.118B $6.507B
YoY Change -50.91% 29.28% 19.16%
Cost Of Revenue $5.836B $6.859B $6.247B
YoY Change -52.08% 29.2% 18.65%
Gross Profit $243.2M $259.8M $260.2M
YoY Change 18.58% 31.48% 32.89%
Gross Profit Margin 4.0% 3.65% 4.0%
Selling, General & Admin $149.0M $153.0M $156.0M
YoY Change -14.86% 15.04% 17.29%
% of Gross Profit 61.27% 58.89% 59.95%
Research & Development $8.600M $8.900M
YoY Change 3.61% 4.71%
% of Gross Profit 3.31% 3.42%
Depreciation & Amortization $3.200M $2.800M $2.900M
YoY Change 23.08% 16.67% 20.83%
% of Gross Profit 1.32% 1.08% 1.11%
Operating Expenses $197.0M $8.600M $8.900M
YoY Change -8.8% 3.61% 4.71%
Operating Profit $46.20M $251.2M $251.3M
YoY Change -523.85% 32.7% 34.17%
Interest Expense $25.30M $22.10M $19.00M
YoY Change 110.83% 97.32% 90.0%
% of Operating Profit 54.76% 8.8% 7.56%
Other Income/Expense, Net $1.700M $2.500M
YoY Change -26.09% 0.0%
Pretax Income $20.50M $32.90M $29.50M
YoY Change -191.11% 119.33% 106.29%
Income Tax $4.800M $8.900M $6.800M
% Of Pretax Income 23.41% 27.05% 23.05%
Net Earnings $15.70M $24.00M $22.70M
YoY Change -166.53% 88.98% 106.36%
Net Earnings / Revenue 0.26% 0.34% 0.35%
Basic Earnings Per Share $0.83 $1.27 $1.20
Diluted Earnings Per Share $0.81 $1.25 $1.18
COMMON SHARES
Basic Shares Outstanding 18.91M shares 18.60M shares 18.56M shares
Diluted Shares Outstanding 18.98M shares 18.86M shares

Balance Sheet

Concept 2018 Q3 2018 Q2 2018 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $342.0M $348.0M $336.0M
YoY Change 8.57% 13.73% 13.51%
Cash & Equivalents $342.3M $347.8M $336.0M
Short-Term Investments
Other Short-Term Assets $3.643B
YoY Change
Inventory $222.5M $212.8M $286.3M
Prepaid Expenses
Receivables $288.0M $219.0M $220.0M
Other Receivables $0.00 $0.00 $1.000M
Total Short-Term Assets $630.0M $567.0M $557.0M
YoY Change 14.96% -77.75% -74.45%
LONG-TERM ASSETS
Property, Plant & Equipment $42.40M $41.00M $41.00M
YoY Change 9.56% 23.87% 26.54%
Goodwill $48.40M $45.80M $45.90M
YoY Change 2.76% -3.58% -3.37%
Intangibles $11.40M $10.60M $11.20M
YoY Change -7.32% -18.46% -18.25%
Long-Term Investments $3.151B $2.949B $3.014B
YoY Change 41.62% 21.86% 10.85%
Other Assets $3.663B $3.401B $3.189B
YoY Change 14.94% 373.02% 183.72%
Total Long-Term Assets $7.195B $6.718B $6.647B
YoY Change 26.32% 84.16% 52.85%
TOTAL ASSETS
Total Short-Term Assets $630.0M $567.0M $557.0M
Total Long-Term Assets $7.195B $6.718B $6.647B
Total Assets $7.825B $7.285B $7.204B
YoY Change 25.33% 17.58% 10.34%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.729B $3.486B $3.311B
YoY Change 16.57% 16.9% 9.13%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $336.2M $311.2M $290.9M
YoY Change 73.12% 28.33% 11.46%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $5.953B $5.302B $5.444B
YoY Change 26.39% 201.59% 18.84%
LONG-TERM LIABILITIES
Long-Term Debt $355.0M $361.0M $341.0M
YoY Change 54.35% 47.35% 29.66%
Other Long-Term Liabilities $867.0M $1.007B $823.0M
YoY Change 20.75% 35.53% -23.87%
Total Long-Term Liabilities $1.222B $1.368B $1.164B
YoY Change 28.9% 38.46% -13.39%
TOTAL LIABILITIES
Total Short-Term Liabilities $5.953B $5.302B $5.444B
Total Long-Term Liabilities $1.222B $1.368B $1.164B
Total Liabilities $7.319B $6.797B $6.737B
YoY Change 26.34% 18.69% 10.94%
SHAREHOLDERS EQUITY
Retained Earnings $317.0M $301.3M $277.3M
YoY Change 21.22% 5.68% 1.8%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $46.30M $46.30M $46.30M
YoY Change 0.0% 0.0% 0.0%
Treasury Stock Shares 2.222M shares 2.122M shares
Shareholders Equity $505.3M $488.0M $467.0M
YoY Change
Total Liabilities & Shareholders Equity $7.825B $7.285B $7.204B
YoY Change 25.33% 17.58% 10.34%

Cashflow Statement

Concept 2018 Q3 2018 Q2 2018 Q1
OPERATING ACTIVITIES
Net Income $15.70M $24.00M $22.70M
YoY Change -166.53% 88.98% 106.36%
Depreciation, Depletion And Amortization $3.200M $2.800M $2.900M
YoY Change 23.08% 16.67% 20.83%
Cash From Operating Activities $571.2M -$396.4M -$462.4M
YoY Change -45.72% -1434.68% -742.22%
INVESTING ACTIVITIES
Capital Expenditures -$3.200M -$2.400M -$3.700M
YoY Change -57.33% -4.0% 19.35%
Acquisitions
YoY Change
Other Investing Activities -$2.900M $0.00 $0.00
YoY Change 1350.0%
Cash From Investing Activities -$6.100M -$2.400M -$3.700M
YoY Change -20.78% -4.0% 19.35%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -5.400M 20.20M -84.90M
YoY Change -59.4% -210.38% 71.52%
NET CHANGE
Cash From Operating Activities 571.2M -396.4M -462.4M
Cash From Investing Activities -6.100M -2.400M -3.700M
Cash From Financing Activities -5.400M 20.20M -84.90M
Net Change In Cash 559.7M -378.6M -551.0M
YoY Change -45.73% -4353.93% -2940.21%
FREE CASH FLOW
Cash From Operating Activities $571.2M -$396.4M -$462.4M
Capital Expenditures -$3.200M -$2.400M -$3.700M
Free Cash Flow $574.4M -$394.0M -$458.7M
YoY Change -45.8% -1323.6% -710.79%

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us-gaap Depreciation Depletion And Amortization
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CY2018Q2 us-gaap Derivative Asset Fair Value Gross Liability And Obligation To Return Cash Offset
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CY2017Q3 us-gaap Derivative Fair Value Of Derivative Asset
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CY2018Q2 us-gaap Derivative Fair Value Of Derivative Asset
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CY2017Q3 us-gaap Derivative Liability Collateral Right To Reclaim Cash Offset
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CY2018Q2 us-gaap Derivative Liability Collateral Right To Reclaim Cash Offset
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us-gaap Earnings Per Share Basic
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us-gaap Earnings Per Share Diluted
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us-gaap Earnings Per Share Diluted
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us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
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us-gaap Effective Income Tax Rate Continuing Operations
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us-gaap Effective Income Tax Rate Reconciliation Change In Enacted Tax Rate
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0.004 Rate
us-gaap Excess Tax Benefit From Share Based Compensation Financing Activities
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100000 USD
CY2018Q2 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value
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CY2018Q2 us-gaap Fair Value Of Securities Received As Collateral That Can Be Resold Or Repledged
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us-gaap Repayments Of Notes Payable
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CY2018Q2 us-gaap Fair Value Of Securities Received As Collateral That Have Been Resold Or Repledged
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us-gaap Fees And Commissions
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212500000 USD
CY2018Q2 us-gaap Fees And Commissions
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96600000 USD
us-gaap Fees And Commissions
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271600000 USD
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CY2018Q2 us-gaap Financial Instruments Owned At Fair Value
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3900000 USD
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1900000 USD
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2000000 USD
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2200000 USD
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us-gaap Floor Brokerage Exchange And Clearance Fees
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101200000 USD
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49000000 USD
us-gaap Floor Brokerage Exchange And Clearance Fees
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136600000 USD
us-gaap Gain Loss On Sale Of Property Plant Equipment
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300000 USD
us-gaap Gain Loss On Sale Of Property Plant Equipment
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0 USD
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700000 USD
us-gaap General Insurance Expense
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us-gaap General Insurance Expense
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1900000 USD
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us-gaap Gross Profit
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us-gaap Gross Profit
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us-gaap Income Loss From Continuing Operations
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CY2018Q2 us-gaap Income Loss From Continuing Operations
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us-gaap Income Loss From Continuing Operations
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39800000 USD
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CY2017 us-gaap Income Loss From Continuing Operations Before Income Taxes Domestic
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15000000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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37700000 USD
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32900000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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us-gaap Income Tax Expense Benefit
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us-gaap Income Tax Expense Benefit
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us-gaap Income Tax Reconciliation Repatriation Of Foreign Earnings
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15800000 USD
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1500000 USD
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1700000 USD
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6400000 USD
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409700000 USD
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us-gaap Increase Decrease In Financial Instruments Sold Not Yet Purchased
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294200000 USD
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174600000 USD
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254000000 USD
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400000 USD
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48900000 USD
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89000000 USD
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10000000 USD
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319700000 USD
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291200000 USD
us-gaap Increase Decrease In Payables Under Repurchase Agreements
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206000000 USD
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us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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363400000 USD
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112700000 USD
us-gaap Increase Decrease In Securities Borrowed
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89700000 USD
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130500000 USD
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us-gaap Information Technology And Data Processing
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us-gaap Interest Expense
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us-gaap Labor And Related Expense
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us-gaap New Accounting Pronouncement Or Change In Accounting Principle Effect Of Change On Net Income
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us-gaap Noncash Or Part Noncash Acquisition Intangible Assets Acquired1
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us-gaap Noninterest Expense
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us-gaap Other Income
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us-gaap Other Noninterest Expense
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us-gaap Payments For Proceeds From Previous Acquisition
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400000 USD
us-gaap Payments Related To Tax Withholding For Share Based Compensation
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us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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us-gaap Payments To Acquire Property Plant And Equipment
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8600000 USD
us-gaap Payments To Acquire Property Plant And Equipment
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9300000 USD
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PrepaidExpenseAndOtherAssets
47400000 USD
us-gaap Proceeds From Repayments Of Debt
ProceedsFromRepaymentsOfDebt
62500000 USD
us-gaap Proceeds From Repayments Of Debt
ProceedsFromRepaymentsOfDebt
131000000 USD
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
3100000 USD
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
2600000 USD
CY2017Q2 us-gaap Professional Fees
ProfessionalFees
3700000 USD
us-gaap Professional Fees
ProfessionalFees
11900000 USD
CY2018Q2 us-gaap Professional Fees
ProfessionalFees
4800000 USD
us-gaap Professional Fees
ProfessionalFees
13400000 USD
CY2017Q2 us-gaap Profit Loss
ProfitLoss
12700000 USD
us-gaap Profit Loss
ProfitLoss
30000000 USD
CY2018Q2 us-gaap Profit Loss
ProfitLoss
24000000 USD
us-gaap Profit Loss
ProfitLoss
39800000 USD
CY2017Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
38700000 USD
CY2018Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
41000000 USD
CY2017Q2 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
100000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
3900000 USD
CY2018Q2 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
1600000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
2900000 USD
CY2017Q3 us-gaap Receivables From Brokers Dealers And Clearing Organizations
ReceivablesFromBrokersDealersAndClearingOrganizations
2625100000 USD
CY2018Q2 us-gaap Receivables From Brokers Dealers And Clearing Organizations
ReceivablesFromBrokersDealersAndClearingOrganizations
2165200000 USD
us-gaap Repayments Of Notes Payable
RepaymentsOfNotesPayable
600000 USD
us-gaap Repayments Of Unsecured Debt
RepaymentsOfUnsecuredDebt
45500000 USD
us-gaap Repayments Of Unsecured Debt
RepaymentsOfUnsecuredDebt
0 USD
CY2017Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
261500000 USD
CY2018Q2 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
301300000 USD
CY2017Q2 us-gaap Revenues
Revenues
5505900000 USD
us-gaap Revenues
Revenues
17041100000 USD
CY2018Q2 us-gaap Revenues
Revenues
7118300000 USD
us-gaap Revenues
Revenues
21543900000 USD
CY2017Q2 us-gaap Revenues Net Of Interest Expense
RevenuesNetOfInterestExpense
123300000 USD
us-gaap Revenues Net Of Interest Expense
RevenuesNetOfInterestExpense
361500000 USD
CY2018Q2 us-gaap Revenues Net Of Interest Expense
RevenuesNetOfInterestExpense
154600000 USD
us-gaap Revenues Net Of Interest Expense
RevenuesNetOfInterestExpense
439200000 USD
CY2017Q2 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
5317000000 USD
us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
16486300000 USD
CY2018Q2 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
6866200000 USD
us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
20836400000 USD
CY2017Q3 us-gaap Securities Borrowed
SecuritiesBorrowed
86600000 USD
CY2018Q2 us-gaap Securities Borrowed
SecuritiesBorrowed
176300000 USD
CY2017Q3 us-gaap Securities Loaned
SecuritiesLoaned
111100000 USD
CY2018Q2 us-gaap Securities Loaned
SecuritiesLoaned
204300000 USD
CY2018Q2 us-gaap Securities Loaned Fair Value Of Collateral
SecuritiesLoanedFairValueOfCollateral
193900000 USD
CY2017Q3 us-gaap Securities Purchased Under Agreements To Resell
SecuritiesPurchasedUnderAgreementsToResell
406600000 USD
CY2018Q2 us-gaap Securities Purchased Under Agreements To Resell
SecuritiesPurchasedUnderAgreementsToResell
769600000 USD
CY2017Q3 us-gaap Securities Sold Under Agreements To Repurchase
SecuritiesSoldUnderAgreementsToRepurchase
1393100000 USD
CY2018Q2 us-gaap Securities Sold Under Agreements To Repurchase
SecuritiesSoldUnderAgreementsToRepurchase
1599000000 USD
CY2017Q3 us-gaap Securities Sold Under Agreements To Repurchase Fair Value Of Collateral
SecuritiesSoldUnderAgreementsToRepurchaseFairValueOfCollateral
19400000 USD
CY2018Q1 us-gaap Securities Sold Under Agreements To Repurchase Fair Value Of Collateral
SecuritiesSoldUnderAgreementsToRepurchaseFairValueOfCollateral
17300000 USD
CY2018Q2 us-gaap Self Insurance Reserve
SelfInsuranceReserve
800000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
4600000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
4900000 USD
CY2017Q3 us-gaap Short Term Borrowings
ShortTermBorrowings
194200000 USD
CY2018Q2 us-gaap Short Term Borrowings
ShortTermBorrowings
311200000 USD
CY2017Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
449900000 USD
CY2018Q2 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
487700000 USD
CY2017Q2 us-gaap Supplies And Postage Expense
SuppliesAndPostageExpense
600000 USD
us-gaap Supplies And Postage Expense
SuppliesAndPostageExpense
1700000 USD
CY2018Q2 us-gaap Supplies And Postage Expense
SuppliesAndPostageExpense
500000 USD
us-gaap Supplies And Postage Expense
SuppliesAndPostageExpense
1300000 USD
us-gaap Tangible Asset Impairment Charges
TangibleAssetImpairmentCharges
3900000 USD
us-gaap Tangible Asset Impairment Charges
TangibleAssetImpairmentCharges
2900000 USD
CY2017Q2 us-gaap Taxes Excluding Income And Excise Taxes
TaxesExcludingIncomeAndExciseTaxes
1200000 USD
us-gaap Taxes Excluding Income And Excise Taxes
TaxesExcludingIncomeAndExciseTaxes
3500000 USD
CY2018Q2 us-gaap Taxes Excluding Income And Excise Taxes
TaxesExcludingIncomeAndExciseTaxes
1300000 USD
us-gaap Taxes Excluding Income And Excise Taxes
TaxesExcludingIncomeAndExciseTaxes
3800000 USD
CY2017Q2 us-gaap Trading Gains Losses
TradingGainsLosses
79900000 USD
us-gaap Trading Gains Losses
TradingGainsLosses
246900000 USD
CY2018Q2 us-gaap Trading Gains Losses
TradingGainsLosses
103400000 USD
us-gaap Trading Gains Losses
TradingGainsLosses
296900000 USD
CY2017Q2 us-gaap Travel And Entertainment Expense
TravelAndEntertainmentExpense
3000000 USD
us-gaap Travel And Entertainment Expense
TravelAndEntertainmentExpense
9600000 USD
CY2018Q2 us-gaap Travel And Entertainment Expense
TravelAndEntertainmentExpense
3700000 USD
us-gaap Travel And Entertainment Expense
TravelAndEntertainmentExpense
10200000 USD
CY2017Q3 us-gaap Treasury Stock Shares
TreasuryStockShares
2121957 shares
CY2018Q1 us-gaap Treasury Stock Shares
TreasuryStockShares
2121957 shares
CY2017Q3 us-gaap Treasury Stock Value
TreasuryStockValue
46300000 USD
CY2018Q2 us-gaap Treasury Stock Value
TreasuryStockValue
46300000 USD
CY2017Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
18702128 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
18659138 shares
CY2018Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
18976898 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
18876259 shares
CY2017Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
18447053 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
18365939 shares
CY2018Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
18597165 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
18524846 shares
us-gaap Fiscal Period
FiscalPeriod
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company&#8217;s fiscal year end is September&#160;30, and the fiscal quarters end on December&#160;31,&#160;March&#160;31, June&#160;30 and September 30. Unless otherwise stated, all dates refer to fiscal years and fiscal interim periods.</font></div></div>
us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Reclassifications</font></div><div style="line-height:120%;padding-bottom:6px;padding-top:6px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">During the three and nine months ended June 30, 2018, the Company separately classified non-trading technology and support costs that were previously included within &#8216;Other&#8217; on the condensed consolidated income statements. Additionally, during the three and nine months ended June 30, 2018, the Company separately classified communications related expenses separately from trading systems and market information related costs. In performing these reclassifications, the Company has made immaterial, retrospective adjustments to conform to the current period presentation. For the three and nine months ended June 30, 2017, &#8216;Other&#8217; expenses included </font><font style="font-family:inherit;font-size:10pt;">$3.2 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$8.9 million</font><font style="font-family:inherit;font-size:10pt;">, respectively, of expenses that are now included within &#8216;Non-trading technology and support&#8217; on the condensed consolidated income statements. For the three and nine months ended June 30, 2017, &#8216;Trading systems and market information&#8217; included </font><font style="font-family:inherit;font-size:10pt;">$1.5 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$3.9 million</font><font style="font-family:inherit;font-size:10pt;">, respectively, of expenses that are now included within &#8216;Communications&#8217; on the condensed consolidated income statements. </font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The most significant of these estimates and assumptions relate to fair value measurement for financial instruments and investments, revenue recognition, the provision for bad debts, valuation of inventories, valuation of goodwill and intangible assets, incomes taxes, and contingencies. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates.</font></div></div>

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